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taxes

Stamp Duty In New South Wales (NSW)

Stamp duty, or transfer duty, is a one-time state tax imposed on buyers when they buy a property. The rules around the duty vary across Australia as it is in the hands of state governments. However, no matter what state you live in – you will pay more stamp duty as the property price increases. In addition to the state you live in and the properties' worth, how much you pay will depend on whether you are eligible for concessions or exemptions. 

Stamp duty rates NSW are generally an upfront cost. However, the NSW government announced the option to pay an annual property tax instead. This fixed-rate land tax would be paid annually for as long as the buyer owns the property. It's an offer available from January 2023 to first-time buyers purchasing a home under $1,500,000. It is not available retroactively for those who already purchased their home. 

How to Calculate Stamp Duty in NSW? 

Stamp duty rates NSW are calculated based on a property's value – whichever is higher between the current market value and the sale price.

Property Value

Stamp Duty Rate NSW

$0 to $15,000

$1.25 for every $100 (minimum $10)

$15,000 to $32,000

$187 plus $1.50 for every $100 over $15,000

$32,000 to $87,000

$442 plus $1.75 for every $100 over $32,000

$87,000 to $327,000

$1,405 plus $3.50 for every $100 over $87,000

$327,000 to $1,089,000

$9,805 plus $4.50 for every $100 over $327,000

Over $1,089,000

$44,095 plus $5.50 for every $100 over $1,089,000

The standard rate doesn't apply to every property or situation, so use the stamp duty calculator for a more accurate result. Foreign buyers will pay an additional surcharge of 8% on top of the standard rate.

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Stamp Duty, First-Time Buyers, And Exemptions

There are options to avoid or limit how much stamp duty you pay. You can seek a concession or an exemption through the First Home Buyers Assistance Scheme. This is available for new homes under the value of $800,000, existing homes under the value of $650,000, and vacant land under $400,000. You can receive a discount for an existing home valued between $650,000 and $800,000. Likewise, vacant land between the value of $400,000 and $500,000. First-time buyers can also apply for a home grant of $10,000. 

There are additional exemptions for beneficiaries receiving property in accordance with a will's terms, or if a property is transferred between de facto or married partners.

Stamp Duty for Cars in NSW 

The car stamp duty in NSW operates on a simple calculation. It is based on the higher amount between the vehicle's purchase price and market value.

Value

Sydney Stamp Duty

Vehicles valued below $45,000

$3 per every $100

Vehicles valued at or above $45,000

$1,350, plus $5 per every $100

The same rates do not apply to commercial vehicles. You can use the stamp duty calculator for an accurate calculation.

When To Pay Stamp Duty In NSW 

You have three months from signing a contract for the property's sale or transfer to pay stamp duty. If you do not pay in time Revenue NSW will charge interest and add penalties. Home buyers purchasing a home can speak to their conveyancer or solicitor about lodging the correct documents during the settlement process. They will also be able to advise you on whether you are eligible for concessions or discounts. 

Whether you are a small business owner or a corporate giant, you need software that can do it all. QuickBooks Tax Software can provide you with a variety of solutions, from accounting to calculating tax, lodging BAS, and managing your cash flow.

While every care has been taken to ensure the accuracy of the information presented as at 01 May 2023, Intuit is not providing you with professional advice and we recommend you obtain your own professional advice. Intuit is not liable for your use of the information presented.


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